{"id":28034,"date":"2024-06-19T08:01:54","date_gmt":"2024-06-19T08:01:54","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=28034"},"modified":"2024-06-25T08:28:04","modified_gmt":"2024-06-25T08:28:04","slug":"opinion-eudr-enactment-pushes-ri-closer-to-china","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2024\/06\/19\/opinion-eudr-enactment-pushes-ri-closer-to-china\/","title":{"rendered":"OPINION: EUDR Enactment Pushes RI Closer To China"},"content":{"rendered":"

When Austria\u2019s ministers of agriculture and economy called on<\/a> the European Commission to delay the implementation of its European Union Deforestation legislation<\/a> (EUDR), exporters in the Indo-Pacific and Latin America sighed with relief.<\/p>\n

\"\"<\/p>\n

The EUDR is part of the EU\u2019s ambitious Green Deal, and it hopes to put an end to the felling of trees at home and abroad that are down to consumption in Europe. Between 1990 and 2020,\u00a0an area larger than the\u00a0Continent was deforested,\u00a0and the EU is considered\u00a0responsible for 10 percent of global deforestation<\/a>.<\/p>\n

However well-intended, though, the directive has rattled producers in Europe and its allies in the developing world \u2014 particularly those in the Indo-Pacific region, where the EU hopes trading partners will derisk from China. Several stakeholders and experts told POLITICO the EUDR wasn\u2019t well thought-through and, at this stage, perhaps far too demanding to actually work, imposing too heavy administrative and financial burdens without offering sufficient details regarding compliance.<\/p>\n

\u201cIt was pushed through quite quickly,\u201d said Bernd Lange, chair of the European Parliament\u2019s Committee on International Trade. \u201cIt\u2019s a massive (administrative) exercise,\u201d concurred Giorgio Indarto, an Indonesian expert in environmental law. \u201cAnd too expensive.\u2019\u2019<\/p>\n

Speaking to POLITICO from an Indonesian district that exports palm oil to Europe, Indarto noted that the biggest problem was the lack of trust the EU displayed in the legislation, which left Jakarta feeling belittled and angry. \u201cThe EU only wants its own standards and mechanisms \u2019\u2019 to trace the origin of products, he said.<\/p>\n

And the EU\u2019s imposition is now pushing his country closer to China, even though Jakarta prefers to remain neutral, he warned.<\/p>\n

But this isn\u2019t surprising. There must be, \u201cno coercion, no more parties who always dictate and assume that my standards are better than yours<\/a>,\u201d Indonesia\u2019s President Joko Widodo said in the past. And President-elect Prabowo Subianto went even further while campaigning last year, saying Indonesia could easily shun European markets.<\/a><\/p>\n

\u201cWhen the politicians say we have more markets, we don\u2019t need Europe \u2014 of course, they mean China,\u201d Indarto said.<\/p>\n

According to Chris Humphrey, executive director of the EU-ASEAN Business Council, the EUDR has caused particular anxiety in Indonesia, and while it\u2019s good that the country was discussing issues in a joint task force with the EU, its producers may well take their business elsewhere. \u201cWhether the EU likes it or not, they may sell to other markets,\u2019\u2019 he said.<\/p>\n

For example, as the world\u2019s third biggest democracy and its fourth largest population, Indonesia has massive reserves of nickel \u2014 an essential element used in batteries for electric vehicles. And experts argue expanding relations is \u201can important building block for the de-risking from China<\/a> that the EU is striving for.\u2019\u2019<\/p>\n

Yet, three years since EU High Representative Josep Borrell\u2019s last visit to Jakarta \u2014 where he expressed hopes to move beyond trade and toward stronger security relations \u2014 a lethal mix of protectionism and deforestation legislation has strained relations. Additionally, the EU has also imposed what Indonesians believe to be a tone-deaf law, dragging Jakarta to the World Trade Organization (WTO) for banning the export of raw nickel.<\/p>\n

The idea behind the law is to trace the origins of products like palm oil, rubber and cocoa to the smallest of plantations, and ensure they aren\u2019t produced on land deforested after December 2020.<\/p>\n

Meanwhile, China has increased its trade with the country, and invested in Indonesian smelters processing nickel.<\/p>\n

According to Tetyana Payosova, who\u2019s currently representing Indonesia in a dispute related to palm oil-based biofuel at the WTO, \u201cBusinesses in the EU and in third countries are required to show complete compliance with the EUDR by next year, so their products can enter EU markets. However, there are still open questions that they don\u2019t have answers to.\u2019\u2019<\/p>\n

The idea behind the law is to trace the origins of products like palm oil, rubber and cocoa to the smallest of plantations, and ensure they aren\u2019t produced on land deforested after December 2020. However, this doesn\u2019t factor in the reality that small-time farmers have fewer means to provide the data the EU seeks and will likely be pushed out of business by bigger traders who can outsource documentation.<\/p>\n

Small farmers produce in small quantities, and their product is then bought by traders who store it in warehouses along with thousands of tons from other farmers. This is all transported onto trains carrying even more goods, and is then shipped to Europe via containers. \u201cHow can we segregate coffee beans of one small farmer from another?\u2019\u2019 asked a diplomat from a forest-rich region speaking to POLITICO.<\/p>\n

Indarto says when it comes to the EUDR, there are currently two groups in Indonesia \u2014 one arguing against engaging with the EU altogether (and the position favored by the current president), and one backing negotiations with the bloc in order to develop a cooperative framework.<\/p>\n

However, forest-rich tropical nations like Indonesia find it unfair that European nations haven\u2019t had to pay any price for their glaring abuse of nature, while they\u2019re being denied a chance to improve the lives of their people and grow their economies. \u201cThey\u2019ve already chopped their forests and developed their economies,\u2019\u2019 the diplomat said. \u201cMuch of our forests are still natural.\u2019\u2019<\/p>\n

Less than 4 percent of forests in Europe are \u201cprimary and old-growth,\u2019\u2019 according to the European Environment Agency, while nearly all the rest were replanted. But that\u2019s hardly an argument to repeat the same catastrophe twice.<\/p>\n

Plus, there is still a way to implement the law and save the environment while also keeping trade flowing. For instance, Humphrey claimed Malaysia has already figured out a way to save small farmers and secure the information the EU requires. \u201cMalaysia is addressing the middle man,\u2019\u2019 he said, \u201cmaking him responsible for compliance.\u2019\u2019<\/p>\n

For this to work, however, the EU will have to climb down from its high horse, stop scolding its partners and adopt an inclusive approach. (Anchal Vohra\/Brussels-based international affairs commentator).<\/em><\/p>\n

Source: politico.eu<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

When Austria\u2019s ministers of agriculture and economy called on the European Commission to delay the implementation of its European Union Deforestation legislation (EUDR), exporters in the Indo-Pacific and Latin America sighed with relief.<\/p>\n","protected":false},"author":1,"featured_media":26800,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","footnotes":""},"categories":[3708,3709],"tags":[],"class_list":["post-28034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\nOPINION: EUDR Enactment Pushes RI Closer To China - Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)<\/title>\n<meta name=\"description\" content=\"Plus, there is still a way to implement the law and save the environment while also keeping trade flowing. 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